VHQ Entertainment Reports Record Earnings18 Oct, 2004 By: Jessica Wolf
Canadian retailer VHQ Entertainment reported record level earnings for fiscal year 2004.
The rental/retail chain saw Earnings Before Interest Taxes Depreciation & Amortization (EBITDA) rise $8.2 million for the current fiscal year, up 6.1 percent from 2003.
DVD rentals outshone VHS for the first time at the chain as well. DVD rentals made up 71 percent of VHQ's fiscal-year rentals, compared to 48 percent the prior year.
Also during the fiscal year, VHQ launched an “at cost” DVD player purchase program to encourage customers to move from the DVD format to VHS. Company research noted that movie rentals increased by three times when a customer switched from VHS to DVD.